Santiago Sept. 24 Media Report

UNCLAS SANTIAGO 000908 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI SUBJECT: Santiago Sept. 24 Media Report Lead -------------- ¶1. All dailies ran extensive coverage of the first presidential debate aired last night on National Television TVN. American Competitiveness Forum -------------- ¶2. In a video conference from Washington organized by the U.S. Embassy , Department of Commerce Deputy Assistant Secretary for the Western Hemisphere Walter Bastian spoke about the goals of the American Competitiveness Forum due to begin next week in Santiago. He stressed that the objective of the forum is to increase integration among nations and organizations to promote competitiveness, and said he hopes it does not turn into a discussion about policy. Bastian noted Chile's progress and success in the area of agricultural with regard to products and sanitary elements (PAS video conference, Financial daily Estrategia, 9/24). ¶3. DAS Walter Bastian said that the Chile-U.S. free trade agreement has increased trade by 340% , which makes it "the most successful" the United States has had. Bastian underscored that Chile has been highly effective in developing new markets, but added that its efforts should focus on diversifying exports to non-traditional destinations and not just on increasing penetration of the U.S. market (PAS video conference, conservative, influential El Mercurio, 9/24). ¶4. DAS Walter Bastian explained that the goal of the Americas Competitiveness Forum is to bring together entrepreneurs from the region to discuss the elements that are crucial for business. "It is not debate about policy or economics. This is about finding ways to improve competitiveness in this hemisphere," said Bastian (Video conference, Invertia. com, 9/24). Bachelet at United Nations -------------- ¶5. In her address to the U. N. General Assembly yesterday, President Bachelet rejected the inequities created by the "neoliberal economic model" and its inability to resolve social problems created by the crisis. "The economic crisis was no accident and much less a cycle of the capitalist economy... It was the crisis of a certain kind of globalization" said Bachelet. She called on the international community to address one major issue: "Social collapse cannot follow economic collapse" (Government-owned La Nacion, 9/24). ¶6. At the U.N. General Assembly yesterday, President Bachelet harshly criticized the response of developed countries to the financial crisis and set Chile as an example of how to mitigate the social effects of this crisis. She questioned the decision of some to use the crisis as "an excuse" to decrease their funding to United Nations food programs. "What a paradox, we only need 0.1% of the financial bailout programs to end the food crisis in dozens of countries," said Bachelet. She also criticized the attitude of those CEOs with responsibility in the financial crisis for assigning themselves million-dollar bonuses, "it's an insult to ethics," she said (El Mercurio, 9/24). Energy -------------- ¶7. In June the Supreme Court ruled that the environmental permit allowing AES Gener to build a thermo-electric plant in Puchuncavi was illegal and yesterday, the Municipality of Puchuncavi notified AES Gener that it must demolish part of its facility, because it does not have the required building permits (La Tercera, 9/24). Presidential Debate -------------- ¶8. Eduardo Frei and Sebastian Pinera had a tough exchange in last night's presidential debate. Frei cited a Transparency International report released yesterday that makes reference to a fine applied by the Securities and Stocks Regulator against Pinera for buying Lan Chile shares in July 2006, using privileged information (La Tercera, 9/24). ¶9. Transparency International cited Sebastian Pinera in its annual report on corruption, mentioning that the Securities and Stocks Regulator accused him in 2006 of using privileged information to buy commercial airline Lan Chile shares (El Mercurio, 9/24). URBAN